Idoit.   The original poster was curious what HIS pay out would be as "independently practicing advisors in an fee-based setup?"

I don't give sh*t what you and anyone else was discussing. I was answering the OPs question.  He isn't setting up an RIA  he is contemplating becoming an IAR and wanted to get an idea of compensation on the fees that his accounts would generate if he was working for an RIA.  You might understand this if you were even remotely connected to the industry(which you are not) instead of spending all your time creating alternate identities and trolling this board (and probably annoying multiple other people throughout the internet)

I sincerely wish you would get a life elsewhere  Or else take the alternate suggestions that have been offered to you.

[quote=joedabrkr] [quote=razeurgame]

If you make a mistake or omission, you pay for it. You either self insure, or you carry insurance with a low or high deductible. The business itself is valuable, it is collateral against any reasonable claims. Analytical clients understand this, clients who just delegate will assess your character.

Obviously you have a particular bias and an agenda which would be proving the superiority of the RIA platform.

I can understand your defensiveness, since you defended Bobby's behavior in another post, something about having fun at happy camp or something goofy like that. Who has an agenda?

[/quote]

Now who is casting about red herrings?   That has nothing to do with your bias towards RIA business and your unrealistic expectations about liability in this business.  I do agree, by the way, that a well-run RIA/IAR portfolio carries less liability than a brokerage relationship.  But-you're not being realistic if you think ownership of the business is sufficient protection/collateral against potential claims.

Not trying to offend, just my strong opinion.
[/quote]

Which part of my answer is a red herring, the first part or the second? They are not related or interdependent. Challenging your assumption that I have an agenda is not a red herring, suggesting that you have one makes a slightly different point about an apparent sales mentality that appears to attack reasonable disussion of an alternative investment management platform.

 I do agree, by the way, that a well-run RIA/IAR portfolio carries less liability than a brokerage relationship.  But-you're not being realistic if you think ownership of the business is sufficient protection/collateral against potential claims.

Now we are making some progress. And, I agree that ownership itself is not sufficient protection. As I mentioned, you either self insure or transfer risk through coverage. Self insurance implies the existence of a nice cash reserve to protect the business.

Specific examples are meaningless unless you know in advance when and how you will get sued.

Forget my assertion.  I was asking you a point blank question.  Let me change it a little.   Would you tell your mom that it was ok to invest her life savings with someone who does not have E & O insurance?

[quote=razeurgame]

Now we are making some progress. And, I agree that ownership itself is not sufficient protection. As I mentioned, you either self insure or transfer risk through coverage. Self insurance implies the existence of a nice cash reserve to protect the business.

[quote=Dust Bunny]

Idoit.   The original poster was curious what HIS pay out would be as "independently practicing advisors in an fee-based setup?"

I don't give sh*t what you and anyone else was discussing. I was answering the OPs question.  He isn't setting up an RIA  he is contemplating becoming an IAR and wanted to get an idea of compensation on the fees that his accounts would generate if he was working for an RIA.  You might understand this if you were even remotely connected to the industry(which you are not) instead of spending all your time creating alternate identities and trolling this board (and probably annoying multiple other people throughout the internet)

I sincerely wish you would get a life elsewhere  Or else take the alternate suggestions that have been offered to you.

[/quote]

Hey, what's with the name calling? If you read the 1st, 4th, and  5th posts, you can see we were on an RIA discussion track. Sometimes, people don't have to spell everything out when they understand each other. Why don't you calm down and consider an apology. I sorry if I offended you, I shouldn't punch back when people like you take a swing at me, you are right about that. Why don't you ask me some technical financial planning question in real time if you are worried about my credentials to engage in this debate?

[quote=anonymous]

Specific examples are meaningless unless you know in advance when and how you will get sued.

Forget my assertion.  I was asking you a point blank question.  Let me change it a little.   Would you tell your mom that it was ok to invest her life savings with someone who does not have E & O insurance?

[/quote]

You bring up a very good point. I would not tell my mom to invest wat any self insured RIA. She is too busy collecting the interest off cds and paying the taxes, and would panic if her account value fluctuated by one penny. She doesn't need to take any risk with her money, other than to help the next generations, and that is not a stated goal.

 Why don't you ask me some technical financial planning question in real time if you are worried about my credentials to engage in this debate?

Because it would be just as productive as talking to my cat.

[quote=joedabrkr] [quote=razeurgame]

Now we are making some progress. And, I agree that ownership itself is not sufficient protection. As I mentioned, you either self insure or transfer risk through coverage. Self insurance implies the existence of a nice cash reserve to protect the business.

[/quote]

I get your point, this is a big issue in your mind, and apparently your clients. I appreciate knowing your viewpoint.

You still don't get it.  From the client's point of view a 'nice cash reserve' doesn't protect them unless you're going to set it aside in some sort of protected escrow account.  Otherwise it just comes down to a point of 'trust me'.  Trust you that the money is there and you're not going to take it out and use it for other purposes.  Not to mention-how much is sufficient?  Do you have the underwriting skills to make a proper determination of that amount?
[/quote]

[quote=Dust Bunny]

 Why don't you ask me some technical financial planning question in real time if you are worried about my credentials to engage in this debate?

Because it would be just as productive as talking to my cat.

[/quote]

I could say something like, " Maybe you and your cat will understand each other ", or maybe some of your buddies here think it's really funny that you completely dissed me, and called names,  and just kicked me in the can instead with a little barb about your cat of accepting responsibility, but that would be mean - on another note, take a look at the second post here, and how the discussion evolved. What is some of you people's problem? How do you define credibility - is it okay for Old Producer to make the type of crack at the beginning of the thread - what if bluestar got chased off, we would have missed this discussion. Why don't you take a vacation?

[quote=razeurgame][quote=Dust Bunny]

 Why don't you ask me some technical financial planning question in real time if you are worried about my credentials to engage in this debate?

Because it would be just as productive as talking to my cat.

[/quote]

I could say something like, " Maybe you and your cat will understand each other ", or maybe some of your buddies here think it's really funny that you completely dissed me, and called names,  and just kicked me in the can instead with a little barb about your cat of accepting responsibility, but that would be mean - on another note, take a look at the second post here, and how the discussion evolved. What is some of you people's problem? How do you define credibility - is it okay for Old Producer to make the type of crack at the beginning of the thread - what if bluestar got chased off, we would have missed this discussion. Why don't you take a vacation?

Well then so be it. I shall have to adjust my own sense of humor. If Bunny want to apologize for calling me an idiot and being schizophrenic, I accepts. Otherwise, if we get into heated debate, I’ll probably be seeing in my mind a rabbit talking to a cat while feeling manic.

[quote=anonymous]

Forget my assertion.  I was asking you a
point blank question.  Let me change it a little.  
Would you tell your mom that it was ok to invest her life savings with
someone who does not have E & O insurance?

That is an outstanding example, so much is implied in your statement at many levels. What an intelligent comment. And what is implied by carrying E & O when you are investing mom's money?

As RR said, " Mr. Gorbachev, tear down this wall."

Since when did Buffet start working as a RR?  Did he start an RIA?

That being said, I'd be comfortable sending my mom to an RIA who had a networth in the billions and no E & O.  I'm not sure that Allreit and razeur are quite at this level.

You probably didn’t get my wall crack, either.